Outlook for Angola's relations with its creditors.
On July 31 the government entered into an agreement with Japan involving a 200-million-dollar concessional loan to support energy projects. It is the latest in a series of 'lifeline' deals concluded with donors and creditors in an attempt to cushion the economic reverberations of the oil price shock, particularly its implications for meeting debt repayments and development goals.
The agreement signed with Congo-Brazzaville on July 31 to jointly exploit the Lianzi oil field could reduce border tensions.
If protests increase, the government may escalate its civil society clampdown, eg through peremptory arrests of activists.
New diamond projects will boost production, though recent 'blood diamond' allegations will raise reputation risks for investors.
Increased diamond sales (up 35% in the first quarter year-on-year) will augment state revenues, but be insufficient to absorb the oil shock.
